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Technical analysis of BTC/USD for Jan 3, 2020
Crypto Industry News:
In most reports summarizing 2019 Bitcoin was not taken into account, and in addition the public still has a rather negative opinion about it. However, despite this, Bitcoin has become the most profitable asset of the past year.
Being more specific, the largest cryptocurrency in 2019 increased its value by over 90%. For comparison, palladium – 57%, followed by crude oil – 35.8% and nickel – 34.1%, according to the data provided by Reuters, at the forefront of traditional assets.
Another objection of Bitcoin opponents is to be its high volatility. Last year, however, showed that this argument is becoming less and less valid. Looking at market data, Bitcoin recorded both positive and negative moves at less than 1% for 150% of this year.
This factor was also responsible for Bitcoin’s perception of the media. At one point, he was considered a safe haven for digital gold, but soon became an asset of purely speculative nature.
Last year, we also witnessed the growth of market foundations. At the end of the year, the number of BTC ATM exceeded 6,000 units worldwide, and the number of active addresses in the Bitcoin network increased by 7%.
Technical Market Overview:
The BTC/USD pair has tested the technical support located at the level of $6,798 and bounced suddenly towards the level of $7,157, creating a Bullish Engulfing candlestick pattern. The bull did not throw a towel just yet and the next target for them is seen at the level of $7,389 and $7,482. Nevertheless, the Bitcoin is still trading inside of a narrow range located between the levels of $6,345 – $7,601 and all these inside movements are not as valid and strong as a breakout move. The larger timeframe trend remains down and there are no signals of any trend reversal just yet.
Weekly Pivot Points:
WR3 – $8,243
WR2 – $7,942
WR1 – $7,641
Weekly Pivot Point – $7,288
WS1 – $6,995
WS2 – $6,660
WS3 – $6,345
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. When the wave 2 corrective cycles are completed, the market might will ready for another impulsive wave up of a higher degree and uptrend continuation.
The material has been provided by InstaForex Company – www.instaforex.com
